Hospitality and Tourism Management

Subject: Crisis Management

1. Which statement below best summaries the definition of a crisis?

a. A crisis is what happens when there has been an unfortunate mistake made which means the organisation will need to make changes to some operational decisions

b. A crisis situation is when a situation stops a goal being achieved for the organisation

c. A crisis is when a dangerous situation happens and the business needs to handle it

d. A crisis is an undesired, extraordinary, often unexpected and timely limited process with ambivalent development possibilities. It demands immediate decisions and countermeasures in order to influence the further development again positively for the organization and to limit the negative consequences as much as possible

2. Crisis does not occur without something triggering it off. The following are negative events that cause crisis. Which of the following would not be a crisis?

a. Wars and riots

b. Natural environment disaster

c. Rain and snowy weather

d. Terrorism and delinquency

3. How to prepare business for a natural disaster. Which of the following actions would not be appropriate?

a. Back up your computer data offline

b. Have a crisis- management plan

c. Have a new action plan ready

d. Appoint a business-continuity team

4. What are the key steps in crisis management? Which of the following statements is not correct?

a. Identify key/critical areas of tourism activities for the organisation/destination = where negative impacts might be felt?

b. Identify those potential events that are potential sources of negative events and the likelihood and circumstances of these occurring

c. Identify the solutions to events that are going to occur, giving a timescale of the event and potential solutions

d. The occurrence of some negative events will be previously unknown as wil be their effects

5. There are a few techniques for identifying potential crisis. Which of the following techniques is not correct?

a. The Delphi method

b. The Scenario Analyst method

c. Early warning System (EWS) method

d. The Forecast Scenario Method

6. Select the one statement that is correct

Crisks management and competitive strategies are all about...

a. A hospitality business needs to consider competitive strategies when it is undertaking crisis management

b. Competitive strategies are all about putting the needs of the business above any crisis

c. The business must be run as normal when there is a crisis situation

d. A hospitality business needs to consider what the competitors are doing when there is a crisis situation

7. Which of the following statements is the most relevant to Porter's Generic Competitive Strategies?

a. Where an event has occurred but cannot be explained or eliminated and the likely criticism is expected to be limited in scale and duration

b. Key risks are those which threatens the basis and scope of the chosen strategy

c. Reactive approach - this is when we wait and do not intensify things by our own actions

d. Proactive approach - this approach needs a good Early warning System (EWS), this means we need highlight the issue(s) before anyone else

8. Crisis Management Planning requires resources. Which of the following statements is not correct?

a. Generic planning

b. Contingency planning

c. Preventive planning

d. Marketing planning

9. One of the crisis management instruments - product development - requires certain questions answered identify the question below that is not required

a. How can we eliminate the effects of the negative event on the benefits we offer?

b. Change in position?

c. What actions are required to ensure resumption/continuation?

d. Modify existing features?

10. One of the crisis management instruments - crisis communication - requires certain actions. Identify the incorrect action

a. Communication depends on the speed with which normal operations resume and pre-crisis level business is reached

b. In first 24 hours, need to ensure appropriate sequencing and scope of communications with key people at the correct time

c. Essential to create understanding and transparency amongst stakeholders, helps credibility of organization and its ability to influence the situation

d. Direct communication gives greater control with the ability to respond more quickly to questions, ect.